IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/28934.html
   My bibliography  Save this paper

Fraud cycles

Author

Listed:
  • Gong, Jiong
  • McAfee, R. Preston
  • Williams, Michael

Abstract

Fraud is an ancient crime and one that annually causes hundreds of billions of dollars in losses. We examine the behavioral patterns over time of different types of frauds, which illustrate cyclical frequencies. We develop an evolutionary theory that suggests cyclic behavior in frauds should be common.

Suggested Citation

  • Gong, Jiong & McAfee, R. Preston & Williams, Michael, 2011. "Fraud cycles," MPRA Paper 28934, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:28934
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/28934/1/MPRA_paper_28934.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Aleksander Berentsen & Yvan Lengwiler, 2004. "Fraudulent Accounting and Other Doping Games," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(3), pages 402-415, September.
    2. M. J. Farrell, 1970. "Some Elementary Selection Processes in Economics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 37(3), pages 305-319.
    3. Daniel Sutter, 2003. "Detecting and Correcting Election Fraud," Eastern Economic Journal, Eastern Economic Association, vol. 29(3), pages 433-451, Summer.
    4. Ed Hopkins, 2002. "Two Competing Models of How People Learn in Games," Econometrica, Econometric Society, vol. 70(6), pages 2141-2166, November.
    5. Paul Povel & Rajdeep Singh & Andrew Winton, 2007. "Booms, Busts, and Fraud," The Review of Financial Studies, Society for Financial Studies, vol. 20(4), pages 1219-1254.
    6. Freeman, Scott & Grogger, Jeffrey & Sonstelie, Jon, 1996. "The Spatial Concentration of Crime," Journal of Urban Economics, Elsevier, vol. 40(2), pages 216-231, September.
    7. Shonkwiler, John Scott & Spreen, Thomas H., 1986. "Statistical Significance And Stability Of The Hog Cycle," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-7, December.
    8. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    9. Feldman, Roger, 2001. "An Economic Explanation for Fraud and Abuse in Public Medical Care Programs," The Journal of Legal Studies, University of Chicago Press, vol. 30(2), pages 569-577, June.
    10. J. V. Hansen & J. B. McDonald & W. F. Messier, Jr. & T. B. Bell, 1996. "A Generalized Qualitative-Response Model and the Analysis of Management Fraud," Management Science, INFORMS, vol. 42(7), pages 1022-1032, July.
    11. Noe, Thomas H & Rebello, Michael J, 1994. "The Dynamics of Business Ethics and Economic Activity," American Economic Review, American Economic Association, vol. 84(3), pages 531-547, June.
    12. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
    13. Hyman, David A, 2001. "Health Care Fraud and Abuse: Market Change, Social Norms, and the Trust "Reposed in the Workmen."," The Journal of Legal Studies, University of Chicago Press, vol. 30(2), pages 531-567, June.
    14. Lui, Francis T., 1986. "A dynamic model of corruption deterrence," Journal of Public Economics, Elsevier, vol. 31(2), pages 215-236, November.
    15. James D. Montgomery, 2010. "Intergenerational Cultural Transmission as an Evolutionary Game," American Economic Journal: Microeconomics, American Economic Association, vol. 2(4), pages 115-136, November.
    16. Larry Samuelson, 1998. "Evolutionary Games and Equilibrium Selection," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262692198, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Fraud cycles
      by Economic Logician in Economic Logic on 2011-03-30 19:38:00

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Monica Ramos Montesdeoca & Agustín J. Sánchez Medina & Felix Blázquez Santana, 2019. "Research Topics in Accounting Fraud in the 21st Century: A State of the Art," Sustainability, MDPI, vol. 11(6), pages 1-31, March.
    2. Marisa Agostini & Giovanni Favero, 2012. "Accounting fraud, business failure and creative auditing: A micro-analysis of the strange case of Sunbeam Corp," Working Papers 12, Venice School of Management - Department of Management, Università Ca' Foscari Venezia, revised Mar 2013.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jonathan Newton, 2018. "Evolutionary Game Theory: A Renaissance," Games, MDPI, vol. 9(2), pages 1-67, May.
    2. J. Doyne Farmer, 2002. "Market force, ecology and evolution," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(5), pages 895-953, November.
    3. Sandholm, William H., 2015. "Population Games and Deterministic Evolutionary Dynamics," Handbook of Game Theory with Economic Applications,, Elsevier.
    4. Kyle Hyndman & Antoine Terracol & Jonathan Vaksmann, 2009. "Learning and sophistication in coordination games," Experimental Economics, Springer;Economic Science Association, vol. 12(4), pages 450-472, December.
    5. Benndorf, Volker & Martínez-Martínez, Ismael, 2017. "Perturbed best response dynamics in a hawk–dove game," Economics Letters, Elsevier, vol. 153(C), pages 61-64.
    6. Mertikopoulos, Panayotis & Sandholm, William H., 2018. "Riemannian game dynamics," Journal of Economic Theory, Elsevier, vol. 177(C), pages 315-364.
    7. Chatterjee, Krishnendu & Reiter, Johannes G. & Nowak, Martin A., 2012. "Evolutionary dynamics of biological auctions," Theoretical Population Biology, Elsevier, vol. 81(1), pages 69-80.
    8. Thuy Nguyen & Victoria Perez, 2020. "Privatizing Plaintiffs: How Medicaid, the False Claims Act, and Decentralized Fraud Detection Affect Public Fraud Enforcement Efforts," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(4), pages 1063-1091, December.
    9. Steen Thomsen, 2001. "Business Ethics as Corporate Governance," European Journal of Law and Economics, Springer, vol. 11(2), pages 153-164, March.
    10. Reinoud Joosten & Berend Roorda, 2008. "Generalized projection dynamics in evolutionary game theory," Papers on Economics and Evolution 2008-11, Philipps University Marburg, Department of Geography.
    11. Rasmusen, Eric, 1996. "Stigma and Self-Fulfilling Expectations of Criminality," Journal of Law and Economics, University of Chicago Press, vol. 39(2), pages 519-543, October.
    12. Benndorf, Volker & Martínez-Martínez, Ismael & Normann, Hans-Theo, 2016. "Equilibrium selection with coupled populations in hawk–dove games: Theory and experiment in continuous time," Journal of Economic Theory, Elsevier, vol. 165(C), pages 472-486.
    13. Benndorf, Volker & Martínez-Martínez, Ismael & Normann, Hans-Theo, 2021. "Games with coupled populations: An experiment in continuous time," Journal of Economic Theory, Elsevier, vol. 195(C).
    14. Lahkar, Ratul & Sandholm, William H., 2008. "The projection dynamic and the geometry of population games," Games and Economic Behavior, Elsevier, vol. 64(2), pages 565-590, November.
    15. Friedman, Daniel & Zhao, Shuchen, 2021. "When are mixed equilibria relevant?," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 51-65.
    16. Panayotis Mertikopoulos & William H. Sandholm, 2016. "Learning in Games via Reinforcement and Regularization," Mathematics of Operations Research, INFORMS, vol. 41(4), pages 1297-1324, November.
    17. Bouwe R. Dijkstra, 2011. "Good and Bad Equilibria with the Informal Sector," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 167(4), pages 668-685, December.
    18. Fabrizio Germano, 2007. "Stochastic Evolution of Rules for Playing Finite Normal Form Games," Theory and Decision, Springer, vol. 62(4), pages 311-333, May.
    19. Uriarte, Jose Ramon, 2007. "A behavioural foundation for models of evolutionary drift," Journal of Economic Behavior & Organization, Elsevier, vol. 63(3), pages 497-513, July.
    20. Bravo, Mario & Mertikopoulos, Panayotis, 2017. "On the robustness of learning in games with stochastically perturbed payoff observations," Games and Economic Behavior, Elsevier, vol. 103(C), pages 41-66.

    More about this item

    Keywords

    fraud; cycle; steady state;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • A10 - General Economics and Teaching - - General Economics - - - General
    • D00 - Microeconomics - - General - - - General

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Economic Logic blog

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:28934. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.